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Bitcoin (BTC), Ethereum (ETH) Consolidating Recent Gains, Outlook Remains Positive

Bitcoin (BTC), Ethereum (ETH) Consolidating Recent Gains, Outlook Remains Positive

Nick Cawley, Strategist

Bitcoin (BTC/USD), Ethereum (ETH/USD) Price, Chart, and Analysis

  • Bitcoin looking to clear the 200-day simple moving average.
  • Ethereum remains underpinned and looking to move higher
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The weekend rally in the cryptocurrency space saw Ethereum break above $3k with ease, while Bitcoin briefly traded above $45k for the first time since mid-May as buyers dominated price action. While the market has since drifted lower into a consolidation phase, the outlook for cryptocurrencies remains positive for the weeks ahead. Bitcoin is just above a prior zone of resistance around $43.5k, while Ethereum’s price action is following the late February/early April chart pattern that pushed ETH to hit a $4,380 high five weeks later.

Bitcoin (BTC), Ethereum (ETH) Looking to Push Higher as Support Levels Hold

Bitcoin’s recent 50%+ rally is now testing the 200-day simple average and this may well temper any further gains in the short-term. A break and close above this indicator would allow BTC to test the $47k level before $50k comes into play.

Bitcoin Daily Price Chart (November 2020 – August 9, 2021)

Ethereum’s current daily chart action is showing a lot of similarities to the consolidation to breakout price action seen between lateFebruary and earlyApril. All three moving averages are now in a positive formation, while the 50-day sma is now breaking above the 200-day sma, producing a bullish ‘golden cross’.

Trend Trading with Moving Averages

Ethereum Daily Price Chart (December 2020 – August 9, 2021)

The Ethereum/Bitcoin spread is also paring recent gains but the outlook again remains positive with all three simple moving averages in order. Support between 650 and 670 may come under pressure, but if this holds then the spread is likely to move higher again and re-test last week’s 730 multi-week high.

Ethereum/Bitcoin Daily Spread (January – August 9, 2021)

Chart via @IG.com

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What is your view on Bitcoin andEthereum – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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